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• USD/CAD gains momentum to near 1.4490 in Monday’s late American session. 
• Trump said that tariffs on Canada and Mexico will go into effect on Tuesday, denting hopes of another reprieve.
• US ISM Manufacturing PMI declined to 50.3 in February vs. 50.9  prior, weaker than expected. 

The USD/CAD pair extends its upside to around 1.4490 during the late American session on Monday. The Canadian Dollar (CAD) weakens to near a one-month low against the Greenback as US President Donald Trump was due to place 25% tariffs on Canadian goods, with the exception of a 10% levy on energy goods, by Tuesday. 

Trump confirmed on Monday that tariffs on Canada and Mexico would go into effect on Tuesday. Trump had previously reaffirmed the new March date after having initially set it for April. Fresh tariff threats from Trump exert some selling pressure on the Loonie. 

Additionally, a fall in crude oil prices on reports OPEC+ will proceed with a planned oil output increase in April and worries that a trade war could hurt the global economy also weigh on the commodity-linked Canadian Dollar. It’s worth noting that Canada is the largest oil exporter to the United States (US), and lower crude oil prices tend to have a negative impact on the CAD value.

On the other hand, the weaker US Dollar (USD) after weaker US economic data might cap the upside for the pair. Data released by the Institute for Supply Management (ISM) on Monday showed that the US Manufacturing Purchasing Managers' Index (PMI) eased to 50.3 in February from 50.9 in January. This figure came in weaker than the expectation of 50.5.

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